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  "documentTitle": "Penumbra, Inc. (PEN)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2019-07-31 00:00:00",
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  "notes": "The table models five scenarios for Medtronic's aspiration pricing ($4k down to $0) and calculates the resulting financial impact.",
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      "text": "With the market-leading stent retriever and well-received aspiration catheters, Medtronic could likely take aspiration share extremely rapidly (as it has been) by temporarily giving away its aspiration catheters for free, or selling it at a steep discount. It would not sacrifice near-term gross profit growth by doing so, and could position itself for longer-term segment growth by establishing itself as the dominant player in neurovascular mechanical thrombectomy. With limited ability to bundle on its own, Penumbra could face significant price compression in its core aspiration vertical without an opportunity to compensate by growing share in its relatively underpenetrated stent retriever vertical.",
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      "text": "With limited ability to bundle on its own, Penumbra could face significant price compression in its core aspiration vertical without an opportunity to compensate by growing share in its relatively underpenetrated stent retriever vertical.",
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      "text": "Aspiration Market Share: 75%",
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      "text": "We estimate that, even if it were to give its stent retrievers away for free as part of its mechanical thrombectomy bundles, Medtronic would be able to grow its mechanical thrombectomy profit dollars through 2019, even when assuming no stent retriever share gains.",
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      "kind": "source-note",
      "text": "1. Assumes slightly above company-wide gross margin, per conversations with industry experts. Accessory quantities equal to sum of aspiration and stent retriever units.",
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      "kind": "title",
      "text": "Discounted Bundling By Deep-Pocketed Mega-Cap Competitors Threatens Industry Pricing",
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